Fact-finder agrees with CMU in faculty contract dispute

In a report just released, the state-appointed fact-finder assigned to tackle a contract dispute between Central Michigan University and its Faculty Association says the FA is in the wrong.

Two major issues are faculty salary and health care benefits.

Although fact-finder Barry Goldman recognizes that CMU has $228 million in unrestricted assets, he said now is not the time to spend it.

“There are two brute facts in this case. The first is that we are in Michigan in 2011. Politically and economically there has never been a worse time for public sector collective bargaining,” Goldman stated in his report.

“The second is that CMU has money. The testimony of labor economist Ruth Beier described unrestricted net assets of $228 million. Boiled down to its essence, this case is about which of those facts is to predominate.”

He said a zero percent increase in the first year and modest increases after that, as proposed by the university, is not an “unreasonable” offer.

“CMU cannot be expected to be as generous as its unrestricted net asset balance would seem to imply. Circumstances are bad and getting worse. It would be extremely unwise for CMU to eat its seed corn,” Goldman stated.

Another key contract dispute focuses on health care benefits. FA members were covered under MESSA insurance and the university paid 95 percent of the premium. The university proposed to switch to the provider that covers other CMU employees.

Goldman said if FA members choose to continue with the more expensive MESSA, he recommends the employee pay the difference.

“That strikes me as eminently fair,” he said.

CMU spokesman Steve Smith said that university officials are currently reviewing the report and he is expected to release a statement later today. FA president Laura Frey was not available for comment.